MIRA INFORM REPORT

 

 

Report No. :

344028

Report Date :

08.10.2015

 

IDENTIFICATION DETAILS

 

Name :

SIME DARBY FUTURES TRADING SDN BHD

 

 

Formerly Known As :

MANPOWER DEVELOPMENT CORPORATION (MALAYSIA) SDN. BHD

 

 

Registered Office :

Main Block, Plantation Tower, 2, Jalan Pju 1a/7, Ara Damansara, Level 10, 47301 Petaling Jaya, Selangor

 

 

Country :

Malaysia

 

 

Financials (as on) :

30.06.2014

 

 

Date of Incorporation :

28.12.1981

 

 

Com. Reg. No.:

79537-A

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Trading of crude palm oil and palm oil products

 

 

No. of Employee :

120 [2015]

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

 

 

Payment Behaviour :

No complaints 

 

 

Litigation :

Clear

 

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

Malaysia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

MALAYSIA - ECONOMIC OVERVIEW

 

Malaysia, a middle-income country, has transformed itself since the 1970s from a producer of raw materials into an emerging multi-sector economy. Under current Prime Minister NAJIB, Malaysia is attempting to achieve high-income status by 2020 and to move farther up the value-added production chain by attracting investments in Islamic finance, high technology industries, biotechnology, and services. NAJIB's Economic Transformation Program (ETP) is a series of projects and policy measures intended to accelerate the country's economic growth. The government has also taken steps to liberalize some services sub-sectors. Malaysia is vulnerable to a fall in world commodity prices or a general slowdown in global economic activity.

The NAJIB administration is continuing efforts to boost domestic demand and reduce the economy's dependence on exports. Nevertheless, exports - particularly of electronics, oil and gas, palm oil and rubber - remain a significant driver of the economy. Gross exports of goods and services constitute more than 80% of GDP. The oil and gas sector supplied about 29% of government revenue in 2014. As an oil and gas exporter, Malaysia has previously profited from higher world energy prices, although the rising cost of domestic gasoline and diesel fuel, combined with sustained budget deficits, has forced Kuala Lumpur to begin to address fiscal shortfalls, through initial reductions in energy and sugar subsidies and the announcement of the 2015 implementation of a 6% goods and services tax. Falling global oil prices in the second half of 2014 have strained government finances, shrunk Malaysia’s current account surplus and put downward pressure on the ringgit. The government is trying to lessen its dependence on state oil producer Petronas.

Bank Negara Malaysia (the central bank) maintains healthy foreign exchange reserves; a well-developed regulatory regime has limited Malaysia's exposure to riskier financial instruments and the global financial crisis. In order to attract increased investment, NAJIB raised possible revisions to the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but retreated in 2013 after he encountered significant opposition from Malay nationalists and other vested interests. In September 2013 NAJIB launched the new Bumiputra Economic Empowerment Program (BEEP), policies that favor and advance the economic condition of ethnic Malays.

Malaysia is a member of the 12-nation Trans-Pacific Partnership free trade agreement negotiations and, with the nine other ASEAN members, will form the ASEAN Economic Community in 2015.

 

Source : CIA

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

79537-A

COMPANY NAME

:

SIME DARBY FUTURES TRADING SDN BHD

FORMER NAME

:

MANPOWER DEVELOPMENT CORPORATION (MALAYSIA) SDN. BHD. (14/09/1985)

INCORPORATION DATE

:

28/12/1981

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

MAIN BLOCK, PLANTATION TOWER, 2, JALAN PJU 1A/7, ARA DAMANSARA, LEVEL 10, 47301 PETALING JAYA, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

MAIN BLOCK, PLANTATION TOWER, 2, JALAN PJU 1A/7, ARA DAMANSARA, LEVEL 7, 47301 PETALING JAYA, SELANGOR, MALAYSIA.

TEL.NO.

:

03-78484000

FAX.NO.

:

03-78484172

WEB SITE

:

WWW.SIMEDARBY.COM

CONTACT PERSON

:

JASNI BIN MUHAMAD ( MANAGING DIRECTOR )

INDUSTRY CODE

:

46202

PRINCIPAL ACTIVITY

:

TRADING OF CRUDE PALM OIL AND PALM OIL PRODUCTS

AUTHORISED CAPITAL

:

MYR 50,000,000.00 DIVIDED INTO
ORDINARY SHARE 50,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 50,000,000.00 DIVIDED INTO
ORDINARY SHARES 50,000,000 CASH OF MYR 1.00 EACH.

SALES

:

MYR 1,242,490,559 [2014]

NET WORTH

:

MYR 187,913,702 [2014]

M1000 OVERALL RANKING

:

621[2011]

M1000 INDUSTRY RANKING

:

32[2011]

STAFF STRENGTH

:

120 [2015]

BANKER (S)

:

CIMB BANK BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STRONG

PAYMENT

:

NO COMPLAINTS

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

GOOD

INDUSTRY OUTLOOK

:

MATURE

 

HISTORY / BACKGROUND

 

The Subject is a private limited company and is allowed to have a minimum of one and a maximum of forty-nine shareholders. As a private limited company, the Subject must have at least two directors. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the Subject is capable of owning assets, entering into contracts, sue or be sued by other companies. The liabilities of the shareholders are to the extent of the equity they have taken up and the creditors cannot claim on shareholders' personal assets even if the Subject is insolvent. The Subject is governed by the Companies Act, 1965 and the company must file its annual returns, together with its financial statements with the Registrar of Companies.

The Subject is principally engaged in the (as a / as an) trading of crude palm oil and palm oil products.

The Subject is not listed on Bursa Malaysia (Malaysia Stock Exchange).

 

According to the Malaysia 1000 publication, the Subject's ranking are as follows:

YEAR

2011

OVERALL RANKING

621

INDUSTRY RANKING

32

The immediate holding company of the Subject is SIME DARBY PLANTATION SDN. BHD., a company incorporated in MALAYSIA.

 

Share Capital History

 

Date

Authorised Shared Capital

Issue & Paid Up Capital

04/11/2014

MYR 50,000,000.00

MYR 50,000,000.00

07/11/1995

MYR 2,000,000.00

MYR 2,000,000.00

 

The major shareholder(s) of the Subject are shown as follows :


Current Shareholder(s) :

Name

Address

IC/PP/Loc No

Shareholding

(%)

SIME DARBY PLANTATION SDN. BHD.

WISMA COSPLANT 1, 2, JALAN SS 16/4, 4TH FLOOR, 47500 SUBANG JAYA, SELANGOR, MALAYSIA.

647766V

50,000,000.00

100.00

---------------

------

50,000,000.00

100.00

============

=====

+ Also Director


Former Shareholder(s) :

Name

Country

IC/PP/Loc No

Shareholding

Last Updated

SIME DARBY NOMINEES SDN.BHD.

MALAYSIA

19350K

2,000,000.00

11/03/2010



DIRECTORS


DIRECTOR 1

 

Name Of Subject

:

MR. SHARIMAN ALWANI BIN MOHAMED NORDIN

Address

:

151-2-2, MENARA DUTA, JALAN DUTAMAS RAYA, SEGAMBUT, 51200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

A1366525

New IC No

:

690921-03-5365

Date of Birth

:

21/09/1969

Nationality

:

MALAYSIAN

Date of Appointment

:

10/02/2014

 

DIRECTOR 2

 

Name Of Subject

:

MR. JASNI BIN MUHAMAD

Address

:

7, JALAN PJU 1A/24B, ARA DAMANSARA, 47301 PETALING JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

6169529

New IC No

:

610323-03-5135

Date of Birth

:

23/03/1961

Nationality

:

MALAYSIAN

Date of Appointment

:

28/02/2005

 

DIRECTOR 3

 

Name Of Subject

:

MS. RENAKA A/P RAMACHANDRAN

Address

:

19, JALAN ENDAH 6/7, 46000 PETALING JAYA, SELANGOR, MALAYSIA.

New IC No

:

671005-10-6080

Date of Birth

:

05/10/1967

Nationality

:

MALAYSIAN

Date of Appointment

:

24/08/2011




MANAGEMENT

 

 

1)

Name of Subject

:

JASNI BIN MUHAMAD

Position

:

MANAGING DIRECTOR

 

2)

Name of Subject

:

ROSLI

Position

:

HUMAN RESOURCE MANAGER

 

 

 

AUDITOR

 

Auditor

:

PRICEWATERHOUSECOOPERS

Auditor' Address

:

1, SENTRAL, JALAN TRAVERS, KUALA LUMPUR SENTRAL, LEVEL 10, 50470 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. AZRIN NASHIHA BINTI ABDUL AZIZ

IC / PP No

:

A1987809

New IC No

:

720603-08-5564

Address

:

15, JALAN DM 3B, DESA MOCCIS, 47000 SUNGAI BULOH, SELANGOR, MALAYSIA.

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

CIMB BANK BHD

 

 

 

ENCUMBRANCE (S)


No encumbrance was found in our databank at the time of investigation.

 

 

LITIGATION CHECK AGAINST SUBJECT


* A check has been conducted in our databank againt the Subject whether the Subject has been involved in any litigation. Our databank consists of 99% of the wound up companies in Malaysia.

No legal action was found in our databank.

No winding up petition was found in our databank.

DEFAULTER CHECK AGAINST SUBJECT


* We have checked through the Subject in our defaulters' database which comprised of debtors that have been blacklisted by our customers and debtors that have been placed or assigned to us for collection.

No blacklisted record & debt collection case was found in our defaulters' databank.

 

PAYMENT RECORD

 

 

SOURCES OF RAW MATERIALS:

Local

:

N/A

Overseas

:

N/A


The Subject refused to disclose its suppliers information.

The Subject refused to provide any name of trade/service supplier and we are unable to conduct any trade enquiry. However, from financial historical data we conclude that :

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

X

]

Good 31-60 Days

[

]

Average 61-90 Days

[

]

Fair 91-120 Days

[

]

Poor >120 Days

[

]

 

 

CLIENTELE

 

Local

:

YES

 

Domestic Markets

:

MALAYSIA

Overseas

:

YES

 

Export Market

:

ASIA

MIDDLE EAST

Credit Term

:

N/A

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

Type of Customer

:

PALM OIL INDUSTRIES


The Subject refused to disclose its credit term information.

 

 

OPERATIONS

 

Goods Traded

:

PALM OIL PRODUCTS

Competitor(s)

:

EURO FIDELITY SDN BHD
FELDA MARKETING SERVICES SDN BHD

Ownership of premises

:

LEASED/RENTED

 

Total Number of Employees:

 

YEAR

2015

2014

2013

2012

2011

GROUP

N/A

N/A

N/A

N/A

N/A

COMPANY

120

100

100

150

100

 

Branch

:

NO

Other Information:


The Subject is principally engaged in the (as a / as an) trading of crude palm oil and palm oil products.

The Subject is part of the Sime Darby Group which its dealing in trading and marketing of the palm oil products.

We were informed that the Subject's products are divided into two categories as palm products and lauric products.

The Subject's Palm products are Fresh fruit bunches (FFB), Crude palm oil, Crude palm olein, Refined Bleached Deodorised Palm Olein, Refined Bleached Deodorised Palm Oil, Refined Bleached Deodorised Palm Stearin, Palm Fatty Acid Distillate, Palm Acid Oil.

The Subject's Lauric products are Palm kernel, Crude palm kernel oil, Refined Bleached Deodorised Palm Kernel Olein, Refined Bleached Deodorised Palm Kernel Oil, Refined Bleached Deodorised Palm Kernel Stearin, Palm Kernel Fatty Acid Distillate.

The products offered by the Subject range from bulk produce to bulk & packed refined products and specialized refined products, which includes other edible oils, sustainable palm products (RSPO)and International Sustainable Carbon Certified Certification (ISCC) products.

 

 

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

0378484000

Current Telephone Number

:

03-78484000

Match

:

YES

Address Provided by Client

:

MAIN BLOCK, PLANTATION TOWER, 2, JALAN PJU 1A/7, ARA DAMANSARA, LEVEL 7,47301,PETALING JAYA,SELANGOR.

Current Address

:

MAIN BLOCK, PLANTATION TOWER, 2, JALAN PJU 1A/7, ARA DAMANSARA, LEVEL 7, 47301 PETALING JAYA, SELANGOR, MALAYSIA.

Match

:

YES

Latest Financial Accounts

:

YES

 

Other Investigations


We contacted one of the staff from the Subject and she provided some information on the Subject.


FINANCIAL ANALYSIS

 

Profitability

Turnover

:

Erratic

[

2010 - 2014

]

Profit/(Loss) Before Tax

:

Increased

[

2010 - 2014

]

Return on Shareholder Funds

:

Acceptable

[

24.00%

]

Return on Net Assets

:

Favourable

[

32.97%

]

The fluctuating turnover reflects the fierce competition among the existing and new market players.The Subject's management have been efficient in controlling its operating costs. The Subject's management had generated acceptable return for its shareholders using its assets.

Working Capital Control

Stock Ratio

:

Favourable

[

2 Days

]

Debtor Ratio

:

Unfavourable

[

112 Days

]

Creditors Ratio

:

Favourable

[

3 Days

]

The Subject's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The Subject's debtors ratio was high. The Subject should tighten its credit control and improve its collection period. The Subject had a favourable creditors' ratio where the Subject could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.

Liquidity

Liquid Ratio

:

Favourable

[

1.56 Times

]

Current Ratio

:

Unfavourable

[

1.58 Times

]

A minimum liquid ratio of 1 should be maintained by the Subject in order to assure its creditors of its ability to meet short term obligations and the Subject was in a good liquidity position. Thus, we believe the Subject is able to meet all its short term obligations as and when they fall due.

Solvency

Interest Cover

:

Nil

[

0.00 Times

]

Gearing Ratio

:

Favourable

[

0.00 Times

]

The Subject's interest cover was nil as it did not pay any interest during the year. The Subject had no gearing and hence it had virtually no financial risk. The Subject was financed by its shareholders' funds and internally generated fund. During the economic downturn, the Subject, having a zero gearing, will be able to compete better than those which are highly geared in the same industry.

Overall Assessment :

Although the turnover was erratic, the Subject had maintained a steady growth in its profit. This indicate the management's efficiency in controlling its costs and profitability. The Subject was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the Subject should be able to repay its short term obligations. The Subject did not make any interest payment during the year. The Subject was dependent on its shareholders' funds to finance its business needs. The Subject was a zero gearing company, it was solely dependant on its shareholders to provide funds to finance its business. The Subject has good chance of getting loans, if the needs arises.

Overall financial condition of the Subject : STRONG

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2011

2012

2013

2014*

2015**

Population ( Million)

28.7

29.3

29.8

30.3

30.5

Gross Domestic Products ( % )

5.1

5.6

5.3

6.0

6.0

Domestic Demand ( % )

8.2

9.4

5.6

6.4

6.2

Private Expenditure ( % )

8.2

8.0

8.6

7.9

6.9

Consumption ( % )

7.1

1.0

5.7

6.5

5.6

Investment ( % )

12.2

11.7

13.3

12.0

10.7

Public Expenditure ( % )

8.4

13.3

4.4

2.3

4.2

Consumption ( % )

16.1

11.3

(1.2)

2.1

3.8

Investment ( % )

(0.3)

15.9

4.2

2.6

4.7

Balance of Trade ( MYR Million )

116,058

106,300

71,298

52,314

-

Government Finance ( MYR Million )

(45,511)

(42,297)

(39,993)

(37,291)

-

Government Finance to GDP / Fiscal Deficit ( % )

(5.4)

(4.5)

(4.0)

(3.5)

(3.0)

Inflation ( % Change in Composite CPI)

3.1

1.6

2.5

3.2

4.0

Unemployment Rate

3.3

3.2

3.0

2.9

3.0

Net International Reserves ( MYR Billion )

415

427

-

417

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

3.50

2.20

-

4.00

-

Average 3 Months of Non-performing Loans ( % )

14.80

14.70

-

-

-

Average Base Lending Rate ( % )

6.60

6.53

6.53

6.85

-

Business Loans Disbursed( % )

15.3

32.2

-

56.0

-

Foreign Investment ( MYR Million )

23,546.1

26,230.4

38,238.0

43,486.6

-

Consumer Loans ( % )

-

-

-

-

-

Registration of New Companies ( No. )

45,455

45,441

46,321

49,144

-

Registration of New Companies ( % )

3.0

(0.0)

1.9

6.1

-

Liquidation of Companies ( No. )

132,485

17,092

26,430

21,753

-

Liquidation of Companies ( % )

417.8

(87.1)

54.6

(17.7)

-

Registration of New Business ( No. )

284,598

324,761

329,895

332,723

-

Registration of New Business ( % )

5.0

14.0

2.0

1.0

-

Business Dissolved ( No. )

20,121

20,380

18,161

21,436

-

Business Dissolved ( % )

1.9

1.3

(10.9)

18.0

-

Sales of New Passenger Cars (' 000 Unit )

535.1

552.2

576.7

598.4

610.3

Cellular Phone Subscribers ( Million )

35.3

38.5

43.0

43.8

-

Tourist Arrival ( Million Persons )

24.7

25.0

25.7

28.0

-

Hotel Occupancy Rate ( % )

60.6

62.4

62.6

63.2

-

Credit Cards Spending ( % )

15.6

12.6

-

13.5

-

Bad Cheque Offenders (No.)

32,627

26,982

28,876

-

-

Individual Bankruptcy ( No.)

19,167

19,575

21,984

-

-

Individual Bankruptcy ( % )

5.8

2.1

12.3

-

-



INDUSTRIES ( % of Growth ):

2011

2012

2013

2014*

2015**

Agriculture

5.8

1.0

2.1

3.8

3.1

Palm Oil

10.8

(0.3)

2.6

6.7

-

Rubber

6.1

(7.9)

(10.1)

(10.4)

-

Forestry & Logging

(7.6)

(4.5)

(7.8)

(4.2)

-

Fishing

2.1

4.3

1.6

2.7

-

Other Agriculture

7.1

6.4

8.2

6.2

-

Industry Non-Performing Loans ( MYR Million )

634.1

-

-

-

-

% of Industry Non-Performing Loans

3.2

-

-

-

-

Mining

(5.4)

1.4

0.9

(0.8)

2.8

Oil & Gas

(1.7)

-

-

3.0

-

Other Mining

-

-

-

46.6

-

Industry Non-performing Loans ( MYR Million )

46.5

-

-

-

-

% of Industry Non-performing Loans

0.1

-

-

-

-

Manufacturing #

4.7

4.8

3.4

6.4

5.5

Exported-oriented Industries

4.1

6.5

3.3

5.6

-

Electrical & Electronics

(4.0)

12.7

6.9

13.3

-

Rubber Products

20.7

3.0

11.7

(0.3)

-

Wood Products

(5.1)

8.7

(2.7)

5.1

-

Textiles & Apparel

13.2

(7.1)

(2.6)

11.5

-

Domestic-oriented Industries

10.7

1.7

6.8

9.4

-

Food, Beverages & Tobacco

4.80

2.70

3.60

6.13

6.13

Chemical & Chemical Products

10.0

10.8

5.6

1.4

-

Plastic Products

3.8

-

-

2.7

-

Iron & Steel

2.2

(6.6)

5.0

0.1

-

Fabricated Metal Products

21.8

13.8

9.9

2.9

-

Non-metallic Mineral

12.1

2.9

(2.0)

5.4

-

Transport Equipment

12.0

3.4

13.8

22.9

-

Paper & Paper Products

9.5

3.1

1.8

4.7

-

Crude Oil Refineries

9.3

-

-

13.0

-

Industry Non-Performing Loans ( MYR Million )

6,537.2

-

-

-

-

% of Industry Non-Performing Loans

25.7

-

-

-

-

Construction

4.7

18.6

10.9

12.7

10.7

Industry Non-Performing Loans ( MYR Million )

3,856.9

-

-

-

-

% of Industry Non-Performing Loans

10.2

-

-

-

-

Services

7.1

6.4

5.9

5.9

5.6

Electric, Gas & Water

3.5

4.4

4.2

3.6

3.9

Transport, Storage & Communication

6.50

7.10

7.30

7.50

7.15

Wholesale, Retail, Hotel & Restaurant

5.2

4.7

5.9

6.9

6.5

Finance, Insurance & Real Estate

6.90

9.70

3.70

4.65

4.25

Government Services

12.4

9.4

8.3

6.1

5.6

Other Services

5.1

3.9

5.1

4.8

4.5

Industry Non-Performing Loans ( MYR Million )

6,825.2

-

-

-

-

% of Industry Non-Performing Loans

23.4

-

-

-

-

* Estimate / Preliminary

** Forecast

# Based On Manufacturing Production Index 



INDUSTRY ANALYSIS

 

MSIC CODE

46202 : Wholesale of palm oil

INDUSTRY :

PALM OIL

According to the Malaysian Palm Oil Council (MPOC), Malaysia currently accounts for 39% of world palm oil production and 44% of world exports in year 2014. Malaysia is also one of the biggest producers and exporters of oil palm and palm oil products. In the last 5 years until year 2014, Malaysia earned between RM50 billion and RM70 billion a year from palm oil exports.

Besides, the ongoing implementation of Entry Point Projects (EPPs) under the National Key Economic Area (NKEA) on palm oil to enhance productivity of upstream and downstream activities will further boost the palm oil sector. Thus, palm oil sector is expected to grow 6.7% in 2014 (2013: 2.6%). Moreover, the total oil palm planted areas increased 2.8% to 5.3 million hectares as at end-June 2014 (end-June 2013: 5.2 million hectares) following the opening of 30,544 hectares of cultivated areas mainly in Sabah and Sarawak. Other than that, the production of palm oil is expected to growth by 1.6% (19.52 million tonnes) in year 2014, compared to 19.22 million tonnes in year 2013.

According to Kenanga Research, the estimated average crude palm oil (CPO) price for 2014 and 2015 is between RM2,100 and RM2,500 per tonne due to lower inventory estimate by end-2015. The estimated prices also lifted by factors such as biofuel demand and petroleum price level. But, the average price of crude palm oil (CPO) strengthened to RM2,542 per tonne during the first eight months of 2014 (January - August 2013: Rm2,309 per tonne). However, with production rising in the second quarter coupled with high inventory level (end-August 2014: 2.1 million tonnes), the price of CPO moderated to RM2,162 per tonne as at end-August 2014, and hitting a five-year low of RM1,914 per tonne in Sept 2014 as stockpiles surged to a more than 1 year high above 2 million tonnes. The moderation in CPO prices was also due to a surge in global supplies of edible oil, particularly the bumper harvest of soybean in the US.

Over the total exports of major products in year 2013, palm oil accounts 6.4% of share in the total exports. During the first seven months of 2014, export receipts of palm oil rebounded by 4.9% to RM25.8 billion (January - July 2013: -21.9%, RM 24.6 billion) due to higher export prices averaging RM 2,703 per tonne (January - July 2013: Rm 2,456 per tonne). As a measure to reduce the high inventory due to strong output, the Government has exempted export tax on CPO until December 2014. The Government's move to extend the export duty exemption for crude palm oil (CPO) has received positive reaction from industry players. The chairman of Malaysian Palm Oil Board (MPOB) said the move provided a stable effect on the CPO market prices.

In Budget 2015, there is an allocation of RM41 million for smallholders to plant and replant oil palm. The incentives for commodities announced in Budget 2015 will help alleviate the problems faced by the industry, especially the poor prices for rubber and palm oil.

According to the Minister of Plantation Industries and Commodities, the Malaysian government will increase the amount of palm oil based bio-diesel in the national diesel supply mix from November 2014, in a move that will also help to increase consumption of crude palm oil (CPO) and reduce stockpile levels of the commodity. The implementation of the B7 blend will also increase the use palm oil which prices have softened due to oversupply in the market. According to the Malaysian Palm Oil Council (MPOC), CPO prices are expected to improve to between RM2,100 and RM2,500 in year 2015, lifted by factors such as biofuel demand from the B7 programme. CIMB Research estimates that the rollout could raise the country's palm oil demand by 263,000-390,000 tonnes per annum, or 1-2% of the total palm oil production in 2013.

OVERALL INDUSTRY OUTLOOK : Mature



CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 1981, the Subject is a Private Limited company, focusing on trading of crude palm oil and palm oil products. The Subject has been in business for over two decades. It has built up a strong clientele base and good reputation will enable the Subject to further enhance its business in the near term. The Subject is expected to enjoy a stable market shares. The Subject is a large entity with strong capital position of MYR 50,000,000. We are confident with the Subject's business and its future growth prospect. With a strong backing from its shareholders, the Subject enjoys timely financial assistance should the needs arise

 

Over the years, the Subject has penetrated into both the local and overseas market. The Subject has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the Subject to further enhance its business in the near term. The Subject is a fairly large and rapidly growing company with over 120 staff in its operations. Overall, we regard that the Subject's management capability is average. This indicates that the Subject has greater potential to improve its business performance and raising income for the Subject.

Despite the lower turnover, the Subject's pre-tax profit have increased compared to the previous year. The higher profit could be due to better control of its operating costs and efficiency in utilising its resources. Based on the higher profitability, the Subject has generated a favourable return based on its existing shareholders' funds which indicated that the management was efficient in utilising its funds to generate income. The Subject is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. Being a zero geared company, the Subject virtually has no financial risk as it is mainly dependent on its internal funds to finance its business. Given a positive net worth standing at MYR 187,913,702, the Subject should be able to maintain its business in the near terms.

 

We regard that the Subject's overall payment habit is prompt. The Subject had a favourable creditors' ratio as evidenced by its favourable collection days.



The industry has reached its optimum level and is generally stable. It is saturated and very competitive. Thus, the Subject's growth prospect is very much depends on its capacity in sustaining its performance in the market.

Based on the above condition, we recommend credit be granted to the Subject promptly.

 



 

PROFIT AND LOSS ACCOUNT

 

THE FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIAN FINANCIAL REPORTING STANDARDS(FRS)

SIME DARBY FUTURES TRADING SDN BHD

 

Financial Year End

2014-06-30

2013-06-30

2012-06-30

2011-06-30

2010-06-30

Months

12

12

12

12

12

Consolidated Account

Company

Company

Company

Company

Company

Audited Account

YES

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

YES

Financial Type

FULL

FULL

FULL

FULL

FULL

Currency

MYR

MYR

MYR

MYR

MYR

TURNOVER

1,242,490,559

1,648,590,865

1,554,185,071

1,798,242,589

1,560,440,670

----------------

----------------

----------------

----------------

----------------

Total Turnover

1,242,490,559

1,648,590,865

1,554,185,071

1,798,242,589

1,560,440,670

----------------

----------------

----------------

----------------

----------------

PROFIT/(LOSS) FROM OPERATIONS

61,987,610

52,478,705

42,040,186

31,874,870

3,759,688

----------------

----------------

----------------

----------------

----------------

PROFIT/(LOSS) BEFORE TAXATION

61,987,610

52,478,705

42,040,186

31,874,870

3,759,688

Taxation

(16,880,586)

(10,854,039)

299,666

(7,988,624)

(970,117)

----------------

----------------

----------------

----------------

----------------

PROFIT/(LOSS) AFTER TAXATION

45,107,024

41,624,666

42,339,852

23,886,246

2,789,571

----------------

----------------

----------------

----------------

----------------

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

92,756,488

51,131,822

31,291,970

6,531,577

3,742,006

Prior year adjustment

-

-

-

874,147

-

----------------

----------------

----------------

----------------

----------------

As restated

92,756,488

51,131,822

31,291,970

7,405,724

3,742,006

----------------

----------------

----------------

----------------

----------------

PROFIT AVAILABLE FOR APPROPRIATIONS

137,863,512

92,756,488

73,631,822

31,291,970

6,531,577

DIVIDENDS - Ordinary (paid & proposed)

-

-

(22,500,000)

-

-

----------------

----------------

----------------

----------------

----------------

RETAINED PROFIT/(LOSS) CARRIED FORWARD

137,863,512

92,756,488

51,131,822

31,291,970

6,531,577

=============

=============

=============

=============

=============

 

 

 

BALANCE SHEET

 

SIME DARBY FUTURES TRADING SDN BHD

 

Investments

32

32

-

-

-

Deferred assets

126,431

988,992

1,794,017

2,260,853

1,110,166

Others

-

-

32

-

-

----------------

----------------

----------------

----------------

----------------

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

126,463

989,024

1,794,049

2,260,853

1,110,166

----------------

----------------

----------------

----------------

----------------

TOTAL LONG TERM ASSETS

126,463

989,024

1,794,049

2,260,853

1,110,166

Stocks

7,583,853

3,150

72,741

12,070,789

143,370,990

Trade debtors

382,949,962

128,993,801

157,423,698

21,964,208

71,967,420

Other debtors, deposits & prepayments

12,799,289

3,887,870

2,313,211

329,381

22,636,433

Amount due from holding company

-

180,504,333

110,170,324

125,563,131

-

Amount due from related companies

84,586,706

79,841,889

135,475,373

159,038,795

241,435,785

Cash & bank balances

17,030,499

3,573,099

15,846,316

25,245,707

32,280,373

Others

6,639,151

2,970,486

6,752,493

38,033

986,700

----------------

----------------

----------------

----------------

----------------

TOTAL CURRENT ASSETS

511,589,460

399,774,628

428,054,156

344,250,044

512,677,701

----------------

----------------

----------------

----------------

----------------

TOTAL ASSET

511,715,923

400,763,652

429,848,205

346,510,897

513,787,867

=============

=============

=============

=============

=============

CURRENT LIABILITIES

Trade creditors

9,301,753

9,053,949

-

840,446

-

Other creditors & accruals

-

4,646

6,449,379

3,966,057

4,666,896

Amounts owing to holding company

1,293,928

-

-

-

279,465,738

Amounts owing to related companies

303,312,575

247,530,122

312,783,683

253,686,952

221,123,656

Provision for taxation

5,778,705

381,957

1,649,781

5,646,689

-

Other liabilities

4,033,241

3,866,940

10,843,528

1,078,783

-

----------------

----------------

----------------

----------------

----------------

TOTAL CURRENT LIABILITIES

323,720,202

260,837,614

331,726,371

265,218,927

505,256,290

----------------

----------------

----------------

----------------

----------------

NET CURRENT ASSETS/(LIABILITIES)

187,869,258

138,937,014

96,327,785

79,031,117

7,421,411

----------------

----------------

----------------

----------------

----------------

TOTAL NET ASSETS

187,995,721

139,926,038

98,121,834

81,291,970

8,531,577

=============

=============

=============

=============

=============

SHARE CAPITAL

Ordinary share capital

50,000,000

50,000,000

50,000,000

50,000,000

2,000,000

----------------

----------------

----------------

----------------

----------------

TOTAL SHARE CAPITAL

50,000,000

50,000,000

50,000,000

50,000,000

2,000,000

Retained profit/(loss) carried forward

137,863,512

92,756,488

51,131,822

31,291,970

6,531,577

Others

50,190

(2,853,001)

(3,009,988)

-

-

----------------

----------------

----------------

----------------

----------------

TOTAL RESERVES

137,913,702

89,903,487

48,121,834

31,291,970

6,531,577

----------------

----------------

----------------

----------------

----------------

SHAREHOLDERS' FUNDS/EQUITY

187,913,702

139,903,487

98,121,834

81,291,970

8,531,577

Retirement benefits provision

82,019

22,551

-

-

-

----------------

----------------

----------------

----------------

----------------

TOTAL LONG TERM LIABILITIES

82,019

22,551

-

-

-

----------------

----------------

----------------

----------------

----------------

187,995,721

139,926,038

98,121,834

81,291,970

8,531,577

=============

=============

=============

=============

=============

 

 

 

 

 

 

FINANCIAL RATIO

 

SIME DARBY FUTURES TRADING SDN BHD

 

TYPES OF FUNDS

Cash

17,030,499

3,573,099

15,846,316

25,245,707

32,280,373

Net Liquid Funds

17,030,499

3,573,099

15,846,316

25,245,707

32,280,373

Net Liquid Assets

180,285,405

138,933,864

96,255,044

66,960,328

(135,949,579)

Net Current Assets/(Liabilities)

187,869,258

138,937,014

96,327,785

79,031,117

7,421,411

Net Tangible Assets

187,995,721

139,926,038

98,121,834

81,291,970

8,531,577

Net Monetary Assets

180,203,386

138,911,313

96,255,044

66,960,328

(135,949,579)

PROFIT & LOSS ITEMS

Earnings Before Interest & Tax (EBIT)

61,987,610

52,478,705

42,040,186

31,874,870

3,759,688

Earnings Before Interest, Taxes, Depreciation And Amortization (EBITDA)

61,987,610

52,478,705

42,040,186

31,874,870

3,759,688

BALANCE SHEET ITEMS

Total Borrowings

0

0

0

0

0

Total Liabilities

323,802,221

260,860,165

331,726,371

265,218,927

505,256,290

Total Assets

511,715,923

400,763,652

429,848,205

346,510,897

513,787,867

Net Assets

187,995,721

139,926,038

98,121,834

81,291,970

8,531,577

Net Assets Backing

187,913,702

139,903,487

98,121,834

81,291,970

8,531,577

Shareholders' Funds

187,913,702

139,903,487

98,121,834

81,291,970

8,531,577

Total Share Capital

50,000,000

50,000,000

50,000,000

50,000,000

2,000,000

Total Reserves

137,913,702

89,903,487

48,121,834

31,291,970

6,531,577

LIQUIDITY (Times)

Cash Ratio

0.05

0.01

0.05

0.10

0.06

Liquid Ratio

1.56

1.53

1.29

1.25

0.73

Current Ratio

1.58

1.53

1.29

1.30

1.01

WORKING CAPITAL CONTROL (Days)

Stock Ratio

2

0

0

2

34

Debtors Ratio

112

29

37

4

17

Creditors Ratio

3

2

0

0

0

SOLVENCY RATIOS (Times)

Gearing Ratio

0

0

0

0

0

Liabilities Ratio

1.72

1.86

3.38

3.26

59.22

Times Interest Earned Ratio

0

0

0

0

0

Assets Backing Ratio

3.76

2.80

1.96

1.63

4.27

PERFORMANCE RATIO (%)

Operating Profit Margin

4.99

3.18

2.70

1.77

0.24

Net Profit Margin

3.63

2.52

2.72

1.33

0.18

Return On Net Assets

32.97

37.50

42.84

39.21

44.07

Return On Capital Employed

32.97

37.50

42.84

39.21

44.07

Return On Shareholders' Funds/Equity

24.00

29.75

43.15

29.38

32.70

Dividend Pay Out Ratio (Times)

0

0

0.53

0

0

NOTES TO ACCOUNTS

Contingent Liabilities

0

0

0

0

0

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.65.26

UK Pound

1

Rs.99.53

Euro

1

Rs.73.47

 

INFORMATION DETAILS

 

Analysis Done by :

HEN

 

 

Report Prepared by :

ASH

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

                                       New Business

 

--

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.